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Staten Island Advance

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556:"They played every tax game there was", recalled one man who once served as publisher for several Newhouse newspapers. That meant that every cost that could conceivably be written off as a business deduction was, that assets were depreciated as rapidly as possible, and that new acquisitions were "written up" as high as the law allowed ... Where Newhouse developed a special advantage was in the way he avoided paying taxes for the profits that remained to him after the payment of corporate taxes ... 76: 36: 254: 772: 586:
in 1983. While the IRS dropped tax fraud charges against them in the 1980s, it increased the Newhouse family tax delinquency bill to $ 1.2 billion, asserting that the Newhouse estate was actually worth $ 2.2 billion, not $ 1.2 billion when Samuel Newhouse Sr. died in 1979, according to the March 13,
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Newspaper analysts were so suspicious of the source of Newhouse's funds that they discussed openly the possibility that he was laundering money...Some went so far as to suggest that his newspaper operations had been used as a front for the notorious Reinfeld mob, a group of booze-peddling hoodlums
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Thanks to an ingenious device created by his accountant, Louis Glickman, and implemented by his attorney, Charles Goldman, Newhouse was able to avoid paying taxes on accumulated earnings and, thus, to multiply the value of his earnings several times. Doing so involved the creation of a special
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corporate structure for the various newspapers ... Because the Goldman–Glickman construct kept the various enterprises separate—for tax purposes at least—each could claim the right to its own surplus. Taken together, the accumulation that resulted was many times what the
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Throughout the 1920s, the Newhouse family loaned money to Henry Garfinkle, which enabled him to open newsstands that increased sales of the newspaper at St. George Ferry Terminal on Staten Island, and later opened newsstands throughout
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One way the Newhouse family was able to accumulate so much money so rapidly was by hiring accountants and lawyers who figured out unique ways for the Newhouse dynasty to avoid paying taxes. As
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As of April 25, 2007, the newspaper's weekday circulation was down 3.9% from 2006, to 59,461, and its Sunday circulation dropped 4.6% from 2006, to 73,203.
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machine. By 1916, when Newhouse was 21, Lazarus rewarded him with a salary of around $ 30,000 per year, and 25 percent ownership of the
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in one of the first in a series of newspapers Lazarus acquired. When Lazarus died in 1924, Newhouse bought his family's share of
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was listed as the nominal headquarters for the Newhouse chain; it did not have a formal headquarters until moving to
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magazines. Author Richard Meeker describes the mounting suspicions about the Newhouse family's source of wealth in
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Throughout the 1940s, the Newhouse family continued aggressively acquiring purchasing newspapers in Syracuse,
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was founded in 1886 by printer John J. Crawford and businessman James C. Kennedy and initially known as the
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quickly surpassed these early competitors, growing from 4,500 in 1910 to over 80,000 by the mid-1990s.
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would have allowed had Newhouse simply treated all of his operations as a single corporation.
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Please help update this article to reflect recent events or newly available information.
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began working as an office assistant to Hyman Lazarus, an attorney, owner of the
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covers news of local and community interest, including Staten Island politics.
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Meeker characterized the Samuel I. Newhouse Foundation as "a charity his
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Parts of this article (those related to the infobox and lede) need to be
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Ungeheuer, Frederick; Greenwald, John; Beck, David (October 24, 1983).
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One year after Newhouse's death in 1979, the Advance Group purchased
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was founded in 1886, there were nine competing daily newspapers in
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in the 1930s, the Newhouse family had enough money to buy the
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and Donald Newhouse, were accused of tax evasion by the
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Newspaperman: S.I. Newhouse and the Business Of News
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is the namesake and nominal flagship publication of
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Samuel Irving Newhouse Sr.
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